If Congress does not take timely action to suspend the HIT, millions of American seniors and others with health insurance coverage could face a major premium increase when the HIT returns. According to an Oliver Wyman study, millions of American seniors and others with health insurance coverage could face a major premium increase of more than $20 billion in 2020 due to the HIT. The analysis showed that, if reinstated, the HIT would lead to a nearly $250 annual increase to premiums for Medicare Advantage beneficiaries.

Allyson Y. Schwartz, President and CEO of Better Medicare Alliance, praised the creation of the task force, and deemed it a, “Positive step towards addressing the HIT.” Schwartz added, “There are 22 million Medicare Advantage beneficiaries who are relying on Congress to lower their health care costs. Repealing or delaying this tax is the most direct way for Congress to prevent a spike in premiums that seniors simply cannot afford.

“Many current and future retirees are at risk of not being able to afford the costs of health care in retirement. Nearly half of Medicare Advantage enrollees live on less than $24,000 per year. According to a recent analysis, 62% of retirees age 65+ years old, as well as, about three out of four non-retired adults age 50 to 64, have less in total retirement savings than what experts recommend saving for health care costs alone.”

Better Medicare Alliance sent the letter to the Senate Finance Committee on June 14, 2019 Washington, D.C.